An agreement has been signed to merge Kynnisferðir (Reykjavik Excursions) with the companies in Eldey's portfolio, creating one of the country's largest companies in the recreational tourism sector. Further details of the merger are currently being finalized, including due diligence and notification to the Icelandic Competition Authority.
Eldey TLH hf. has invested in recreational tourism and is a shareholder in companies including North Sailing, Arcanum Glacier Tours, Dive.is, and Logakór. Through this merger, Eldey's shareholders will become shareholders in Kynnisferðir.
Kynnisferðir is one of the country's largest tourism companies and also engages in other operations, such as subcontracting for the public bus service, Strætó.
The goal of the merger is to streamline operations and strengthen joint sales and marketing efforts. Arctica Finance is acting as advisor to Kynnisferðir, and Íslandsbanki Corporate Finance is acting as advisor to Eldey.
"This merger is important for all parties involved, as it will put us on a stronger footing to face the challenges currently confronting the tourism industry, while also better positioning us to seize future opportunities. It has never been more important than it is now," says Björn Ragnarsson, CEO of Kynnisferðir.
"With this merger, we are creating a large and powerful tourism company, which has been Eldey's goal from the beginning. The combined company will offer a diverse range of recreational activities and services for everyone who wants to enjoy Iceland's nature," says Hrönn Greipsdóttir, CEO of Eldey.
